FDI in Automobile Sector - Process, Fees & Documents Required

The components permit under automobile sector in FDI are as follows

• Electric vehicles
• Connected and autonomous vehicles
• Components and ancillary industries
• Others include—
  1. Commercial vehicles
  2. Passenger vehicles
  3. Three-wheelers
  4. Quadricycles
  5. Two-wheelers

Many documents are required for FDI in poultry and dairying sectors which are as follows:

• List of names, addresses, and identification proof of all foreign collaborators of the investor company/entity
• From both investor/investee entities- Certification of Incorporation and MoA
• Copy of joint venture agreement/ shareholders agreement/technology
• Copy of downstream intimation
• Copy of relevant past FIPB/SIA/RBI joint with the current proposal
• Copy of Downstream Intimation
• An affidavit to ensure all documents are relevant
• Valuation certification approved by a certified chartered accountant
• CS Certificate
• Declaration by the Authorized Representative of the Indian Company/LLP
• Pre and post-shareholding pattern in the Indian company
• Copy of the order of the High Court on the scheme of merger/ demerger/ amalgamation (if applicable)
• RBI approval on the amount of refund concerning the amount of the issue (if applicable) Valuation certificate
• Relevant RBI approvals for an issue of equity shares against funds payable to the foreign investor
• FIRC/ Debit statement
• Know Your Customer (KYC)

The benefits of automobile sectors in FDI are as follows:

1. Job Opportunities - The automobile sector requires many other segments to forge parts and auto components, including— steel, iron rubber, aluminum, computer chips, and paints. This involvement has been considered a single interface to bring millions of skill-minded workforce together under one roof.
2. Empowering technologies - The automobile sector has stimulated the growth trend over the past few decades as it tries to make splendid efforts to manifest the technologies soar in order to enhance innovation in the new vehicle market, which comprises— electric vehicles, autonomous vehicles, and hybrid cars.
3. Sustainable & Environment Friendly - Carbon emissions would not be expected to reduce profuse tension on limited natural resources. In order to bring transition in the vehicle market, the automobiles running on modern roads now demand environment-friendly transportation of Electric Vehicle (EV) while offering rides to millions of passengers.
4. Convenient - The convenience served through transportation laid comfort to people who will have to travel several miles of journey. This ease allows the mobility for passengers to travel long distances in a short time.
5. Development of New Market - Through the comprehensive industrialization of the new vehicles industry, the market also flourished to ₹ 15 lacs crore by the end of FY 24. In this regard, the emerging market upbeat the ultimate innovative culture of development over out of date sales of vehicle components.

India is approached as the world's second-largest prosperous automobile sector that can attract global investors along with an estimated FDI equity inflow of ₹15 lakh crore. It has always strived for precise alternatives to replace the tailpipe emissions from EVs (Electric vehicles) associated with the expectation of efficient, cheap, and biodegradable merits by foreign and local investors in the line of integrated globalization input widely.

Several other factors to consider for investors while investing in heavy industries sector are listed below:

• Before involving huge investments, applicants must be prerequisites to check the kind of companies the government allows them to invest in. Because investment in the stock market is volatile and may not recover your loss, leading to unwriggled investment awareness about investment should be carried forward by most experienced investors.
• Additionally, before application applicants need to inspect and ensure that all the requisite documents are submitted online without discovering any omissions and incorrect information within the documents. FDI is largely inspired to bring investors forth along with certain advantages that benefit sectors.